Interesting article about Oil

wanghong

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" k" T" M4 P" s4 V: aBelow is an Interesting article I found, which says that.....Do not
( _9 k/ U1 o* ~expect much from Crude Oil producers and future is not with the
7 n  N% B4 ~: f6 c6 d$ Bcompanies producing Jet fuels but Biofuels. Also no wonder if some of
6 p3 V% X" L  o# athese oil producer will go bankrupt or out of the business even if
: W" M# {5 a$ y# Hcrude prices improves. This implies also to good names such as Shell,
/ y# F- s* A9 U& S/ F  \EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
) I5 C3 Q, J& f1 g0 R  LA year ago these things would have spiked the price of crude oil by at
4 W% r+ u6 [) @0 Qleast $50.00 per barrel. Today, oil price declined by a record amount.

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1 e5 x$ Q* w. I( XThere are several reasons the price of oil is decreasing in the face
8 c9 T6 l( G) Iof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
- S. g- J) V6 D  ?This is the largest find in North America.
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! m4 a2 h' b" N3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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- g! F+ G2 ]9 o. v7 w% L4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
9 O& j: r% s0 g4 b3 ]racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
' `4 s9 P, ?5 l0 o2 b7 Mare now selling their used oil to bio-diesel producers. Every pork,
& D$ }  t& \1 t% k5 k9 Vcattle, turkey and chicken processing plant will soon sell their fat
: n" ]! E4 R( X, `to bio-diesel producers. One pork processing plant in Oklahoma is
# D% f# S% Y7 c3 _% M" n: ^producing 30,000 gallons of bio-diesel per day from pork fat.
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+ Y2 p" |, F$ y7 r& U+ x" U2 U6. There are 99 nuclear reactors in various stages of planning and
# j6 y: t% H. O0 k/ uconstruction around the world at this time. Several hundred more are
# Y7 Y0 i, g1 Y/ J1 {expected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
" q, }" L3 ]2 @* b! Colder equipment such as trucks, airplanes, train engines, ships, etc.
# @: a* E& i0 }2 N; kwith new more fuel efficient equipment. Airlines and railway companies
/ z& @5 L% u0 Y6 \1 H0 w8 Eare experiencing 20% to 25% better fuel econony with the new
equipment.


4 g5 d. x0 y8 v! X6 X. ]. gAirlines are flying airplanes with bio-fuel. They are finding the bio-
! o' J2 ]+ V% o9 jfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
! n5 ?- y( p+ m% |capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
* u+ h, v' c" L* p7 C- ?* M; L' @oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
  t$ W. `3 I2 K9 u6 f& Lproduced as a byproduct is sold to oil companies for injection into
* x  T" \6 k" toil wells.
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+ V2 C* B4 S% K; c6 ^' {10. Solar, wind and ocean energy is displacing oil as an energy
. }& U8 @' F4 {5 S9 Ssource. Three new wind turbines are being erected every day in the US.


: ~6 Z: g) J6 ^5 H8 o  Q$ U3 m% wEach of the above by itself will not make a large difference in the
) q( j: E: f: F& X/ ], `5 gprice of crude oil but the sum of all of them together is world
, X3 T/ w7 X! \changing. The important thing is that OPEC no longer has the ability
/ n! @3 B. c( |2 o; Dto control oil prices.
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With the above scenario, I still believe that there are under
, O/ ^4 m# w# W# i( r9 `8 H' v  @performed OIL companies and probably they are yet to get the justified
6 S2 ^5 R+ ?  j9 U7 Rvalue .....
# T7 f0 M, D; ^2 t/ X8 a% }- lIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


; g9 R6 |- ^9 B) k7 p+ mThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
  F; ^+ e$ C! e( C2009 ... FYI-Only